The Fractal Industries Ltd IPO, a ₹49 crore SME issuance, has drawn encouraging investor interest on the final day of bidding, with subscriptions nearing four times the shares on offer. The IPO, entirely a fresh issue with no offer-for-sale (OFS) component, opened on 16 February 2026 at a price band of ₹205–₹216 per share and closes on 18 February 2026. The strong demand across institutional and retail segments highlights market confidence in the company’s business in garment manufacturing, e-commerce supply chain services, and end-to-end logistics solutions. The shares are expected to list on the BSE SME platform on 23 February 2026.
Author : Aashiya Jain | EQmint | Market news
About Fractal Industries: From Design to Delivery
Fractal Industries operates as an integrated garment manufacturer and supply chain partner, catering primarily to e-commerce marketplaces such as Myntra, Ajio, and other leading platforms. The company combines design, sourcing, manufacturing, warehousing, and logistics to provide fast, quality apparel and related services to brands and private labels across India. With a monthly production capacity exceeding 300,000 garment units, Fractal also operates strategic warehouses in key states such as Gujarat, Maharashtra, Haryana, West Bengal and Karnataka to ensure timely delivery and fulfilment for its clients.
This diversified model is built on the idea that fashion and e-commerce thrive on speed, reliability and data support elements that Fractal integrates through services like Product Management Systems, inventory and returns handling, order management systems (OMS), and data analytics for anomaly detection and multi-channel sales enablement.
IPO Structure and Key Details
The IPO of Fractal Industries is structured as a book-built issue comprising 22.68 lakh equity shares, entirely as a fresh issue of capital. With a price band of ₹205 to ₹216, the company aims to raise about ₹49 crore, which will be used primarily for working capital requirements and general corporate purposes.
Under the subscription norms:
- Minimum application size: 600 shares
- Retail investor coverage: Ability to apply for at least two lots
- Listing venue: BSE SME platform (tentatively on 23 February 2026)
- Allotment date: Expected on 19 February 2026
The issue will dilute about 28.9 % of the company’s post-issue paid-up share capital. Prior to the IPO, the promoters held nearly 97 % of equity, which will dilute after the fresh issuance.
Investor Response and Subscription Trend
By the third and final day of bidding, the IPO had already seen robust demand across investor categories. As per data from market platforms:
- Qualified Institutional Buyers (QIBs): ~4.96 times subscribed
- Non-Institutional Investors (NIIs): ~1.17 times subscribed
- Retail Individual Investors (RIIs): ~0.82 times subscribed
- Overall subscription: ~2.01 times as of close on 17 February 2026
However, some market reports on subscription data vary slightly quoting up to 4.0 times booking against total shares offered suggesting even stronger bidding interest based on certain data feeds.
Notably, QIB interest stood out, reflecting confidence among larger institutional investors in the company’s future prospects and operational model. This institutional backing can often signal deeper analyst scrutiny and perceived long-term value, even when retail subscription lags slightly.
Grey Market and GMP Signals
Grey market indicators or GMP they’re often watched ahead of IPO listings for unofficial pricing sentiment. In this case initial reports suggested a premium over the upper price band in early grey market trades hinting at possible subscriber optimism.
However such data can shift rapidly and should be taken as indicative rather than definitive. Should the IPO list at or near the upper band of ₹216 it would reflect positive sentiment among short-term traders and long-term participants alike potentially offering a stable debut performance on the BSE SME.
Why the Market Is Watching
Fractal Industries’ journey from a pan-India apparel and supply chain provider to a publicly traded SME highlights broader trends in e-commerce logistics fast fashion manufacturing and integrated supply networks.
As online shopping continues to grow in India and brands push for faster delivery and tighter quality standards companies that can seamlessly blend manufacturing with data and logistics support are poised to benefit Investors are increasingly focusing on businesses that can deliver repeatable revenue streams scalable operations and diversified customer bases, all areas where Fractal’s integrated model aims to shine. The interest from QIBs in particular suggests institutional belief in the validity of the company’s business case.
Looking Ahead
The subscription window closes on 18 February and allotment is expected on 19 February. Now all eyes are on the listing day on 23 February 2026. Whether Fractal Industries can keep up the subscription momentum into pricing and debut performance will be closely watched by retail and institutional investors alike.
If the positive trend holds, the company could set a strong precedent for SME IPO opportunities in India’s crowded capital markets. Especially in sectors driving e-commerce, supply chain digitisation, and flexible manufacturing solutions. This could be a big moment for small and medium enterprises looking to tap into public markets. Investors will be watching closely.
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